Bloomberg Law just reported:
Cava Group Inc.'s founders and financial backers dumped billions of dollars in stock at prices inflated by hype about the company’s supposedly soaring trajectory, an unsealed lawsuit said Tuesday.
A pension fund hit Cava’s corporate leaders with insider trading claims, saying they helped affiliates of the Belgian billionaire Eric Wittouck unload shares worth nearly $1.8 billion while selling the public a bogus narrative about accelerating growth.
Two of Cava’s directors are linked to Invus Group LLC, a New York firm that manages investments for Artal Group SA, a Wittouck family holding company, according to the Delaware Chancery Court filing.
Members of Cava’s board and management allegedly sold nearly $500 million in stock between August 2024 and March 2025, a figure that includes roughly $330 million in sales by trusts affiliated with co-founder Ronald Shaich, a billionaire who previously started Au Bon Pain Inc. and Panera Bread Co. “While the defendants reaped more than $2 billion of profits, stockholders were left holding the proverbial bag,” the suit says.
The case involves shareholder derivative claims, which are technically filed on a company’s behalf against its officers, directors, or controlling stockholders. Derivative suits typically seek to claw back cash into the corporate coffers.
The lawsuit was originally filed under seal July 22 by the Cleveland Bakers and Teamsters Pension Fund, which is represented by Prickett, Jones & Elliott PA and Hach Rose Schirripa & Cheverie LLP. Cava and its corporate leaders haven’t yet made court appearances. The case is Cleveland Bakers & Teamsters Pension Fund v. Schulman, Del. Ch., No. 2026-0965, complaint unsealed 7/28/26.
[https://news.bloomberglaw.com/esg/cava-founders-board-hit-with-2-2-billion-insider-trading-case](https://news.bloomberglaw.com/esg/cava-founders-board-hit-with-2-2-billion-insider-trading-case)